ADB Greenlights $350 Million Loan to Enhance India's Logistics Sector and Generate Employment
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Manila, Dec 7 (NationPress) In an effort to assist India in enhancing and modernizing its logistics sector, the Asian Development Bank (ADB) has sanctioned a $350 million policy-based loan to facilitate comprehensive reforms in the sector.
The reforms in the logistics sector are anticipated to generate significant employment opportunities, both in urban and rural regions. The surge in demand for skilled logistics personnel, spurred by private sector investments and improved process efficiency, will play a vital role in job creation.
This loan is intended to fund the second subprogram of the ‘Strengthening Multimodal and Integrated Logistics Ecosystem Programme’, which backs the government’s initiatives to establish a thorough policy, planning, and institutional framework at the federal, state, and city levels.
The government has introduced several strategic policies to tackle challenges in the logistics sector, including the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP).
“The evolution of the logistics sector significantly influences the competitiveness of the manufacturing sector. Enhanced logistics efficiency boosts supply chain resilience, lowers transaction costs, and improves export competitiveness,” stated Sameer Khatiwada, ADB Senior Public Management Economist.
“The incorporation of digital technologies and standardized processes promotes seamless movement of goods, which is essential for the growth of manufacturing,” Khatiwada further added.
ADB’s initiative has supported India’s reform endeavors, which have improved India's position in the World Bank’s Logistics Performance Index and drastically reduced logistics costs.
Crucial actions include the establishment of institutional frameworks for logistics planning at state and city levels, execution of a grain storage strategy, and the adoption of green transition guidelines for inland waterways.
From 2000 to 2022, India’s goods exports surged from $48.5 billion to $467.5 billion, while industrial exports escalated from $39.6 billion to $317.4 billion.
The government aims to achieve $2 trillion in exports of goods and services by 2030.
With strategic policy reforms, infrastructural advancements, and digital integration, the government’s ongoing reforms are poised to revolutionize the logistics landscape, according to ADB.
